Siddaramaiah Decries Centre’s Bias in Resource Allocation

During Karnataka’s 79th Independence Day celebrations on August 15, 2025, Chief Minister Siddaramaiah accused the central government of discriminatory resource allocation, claiming it undermines the state’s development. Speaking at Bengaluru’s Sam Manekshaw Parade Ground, he also expressed alarm over constitutional bodies like the Income Tax Department, Enforcement Directorate, and CBI, alleging they are straying from the principles of democracy and cooperative federalism enshrined in the Constitution. “Every responsible citizen must raise their voice against this,” he urged, highlighting concerns about federal fairness.

Siddaramaiah touted the “Karnataka Model of Development,” globally recognized for its guarantee schemes, including Anna Bhagya, Shakti, Gruha Lakshmi, Gruha Jyothi, and Yuva Nidhi. “Guided by the 12th-century Basavadi Sharanas’ principle of living by one’s word, our model has gained international acclaim,” he said, noting that UN General Assembly President Philemon Yang praised the schemes during a visit to Karnataka. With over ₹96,000 crore allocated since May 2023, these initiatives have driven milestones like 500 crore free bus trips for women under the Shakti scheme, boosting women’s workforce participation by 23%, according to studies.

The CM addressed stark economic disparities, citing surveys showing the wealthiest 10% hold 80% of India’s wealth but contribute only 3% of GST, while the remaining 90% bear 97% of the tax burden. “How can an economy sustain such inequality? Our guarantee schemes aim to address this,” he said, emphasizing social justice. Karnataka’s per capita income has surged 101% from ₹1,01,858 in 2013-14 to ₹2,04,605 in 2024-25, making it the highest in India, with over ₹1.12 lakh crore invested in welfare programs.

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Siddaramaiah also highlighted the state’s caste census, conducted through the Backward Classes Commission, to inform policies for equitable representation, particularly for Scheduled Castes and backward classes. “Ignoring this betrays our Constitution and freedom struggle,” he asserted, reaffirming his government’s commitment to a socio-educational survey.

The CM paid tribute to martyrs of the recent Pahalgam terrorist attack and India-Pakistan conflict, honoring their sacrifice. However, his speech focused heavily on the Centre’s alleged bias, echoing earlier protests, including a February 2024 demonstration at Delhi’s Jantar Mantar, where he claimed Karnataka lost ₹62,098 crore due to a reduced tax share under the 15th Finance Commission. He reiterated demands for fair devolution, noting that for every rupee Karnataka contributes to the national exchequer, it receives only 15 paise.

Siddaramaiah’s address underscored Karnataka’s contributions to India’s economy and its push for equitable resource distribution, aligning with broader southern state grievances about federal funding disparities. His call for action resonates as the state gears up for the 2025-26 Union Budget, with demands for ₹5,495 crore in special grants and ₹6,000 crore in state-specific grants still pending.

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